HP lays off 30,000 employees, CEO says this would be the last round of job cuts
HP's CEO Meg Whitman has confirmed that the company will lay off an additional 30,000 staff, but she also said that this would be HP's last round of job cuts.
Image source: HP
In October last year, HP announced that it would split into two companies - one to focus on enterprise and the other on consumers.
The split comes as the company needs to remain competitive in this fast changing landscape. It will allow the two companies to focus on their customers by being able to react more swiftly to new trends and needs.
And as part of a restructuring effort over the past year, HP has just announced that it will be slashing its workforce by another 30,000 - about 10% of HP's current 300,000 strong workforce.
The cut will come from the enterprise side of business. The enterprise side has seen revenue decline for the past couple of years and many analysts point toward HP's US$13.9 billion acquisition of EDS (Electronic Data Systems) in 2008 as the root cause of this problem.
The cut would save HP about US$2.7 billion a year, though it would also cost HP roughly the same amount to execute.
Whitman also said in an interview that she expects this to be the final restructuring effort as HP prepares to split itself later this year.
Source: re/code
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